Candlestick patterns 💚 I just shared a $4 gift! Go check the pinned post on my profile — enjoy! 💎are one of the most widely used tools in technical analysis. They help traders understand market psychology, identify possible trend reversals, and improve entry or exit timing. Below is a structured guide to bullish, bearish, and neutral candlestick formations commonly used in crypto and other financial markets.
📌 Check my pinned post for reward-related updates.
🟢 Bullish Candlestick Patterns
(Often signal a potential upward reversal after a downtrend)
1. Bullish Engulfing Pattern
A strong bullish candle fully covers the previous bearish candle, showing that buyers have taken control of the market.
2. Tweezer Bottom (Bullish Tweezers)
Two consecutive candles form nearly identical lows, suggesting strong support and a possible trend reversal upward.
3. Morning Star Pattern
A three-candle setup where a small-bodied candle appears between a bearish candle and a bullish candle, indicating a shift from selling pressure to buying interest.
4. Hammer Candle
A single candle with a small real body and a long lower shadow, showing that buyers pushed prices back up after heavy selling.
5. Inverted Hammer
This candle has a small body and a long upper wick, signaling that buyers are testing strength after a downtrend, often appearing near market bottoms.
6. Three Inside Up Pattern
A bearish candle followed by two bullish candles, confirming that buying momentum is strengthening.
7. Three White Soldiers
Three consecutive bullish candles with higher closes, reflecting strong and sustained buying momentum.
🔴 Bearish Candlestick Patterns
(Often signal a potential downward reversal after an uptrend)
8. Bearish Engulfing Pattern
A large bearish candle completely covers the prior bullish candle, indicating strong selling pressure.
9. Tweezer Top (Bearish Tweezers)
Two candles form similar highs, suggesting resistance and a possible downward move.
10. Evening Star Pattern
A three-candle reversal where a small-bodied candle appears between a bullish candle and a bearish candle, signaling weakening buying strength.
11. Shooting Star
A candle with a small body and a long upper wick, showing that buyers failed to maintain higher prices.
12. Three Black Crows
Three consecutive bearish candles with lower closes, indicating strong bearish control.
13. Three Inside Down Pattern
A bullish candle followed by two bearish candles, confirming the start of a downward trend.
⚪ Neutral or Indecision Candlestick Patterns
(Signal uncertainty in the market)
14. Spinning Top
Candles with small bodies and long upper and lower wicks, reflecting a balance between buyers and sellers.
15. Doji
A candle where the opening and closing prices are nearly identical, indicating market hesitation and potential trend change.
Key Takeaway
Candlestick patterns help traders read price action and market sentiment, but they work best when combined with:
Support and resistance levels
Volume analysis
Trend direction
Risk management strategies
No pattern guarantees success—confirmation is always important.
References
Steve Nison – Japanese Candlestick Charting Techniques
Binance Academy: Candlestick Pattern Guides
Investopedia: Technical Analysis & Candlestick Patterns
#TechnicalAnalysisBasics
#CryptoCandlestickPatterns
#PriceActionTradingGuide
#MarketStructureEducation
#BinanceTradingTools